Debts Recovery Tribunal allowed bank's application for recovery of Rs.24,31,881.57. Court reduced claimed interest to 8% p.a. and ordered issuance of recovery certificate pending execution.
Directed defendants to pay Rs.24,31,881.57 with 8% p.a. interest; issued recovery certificate; authorized execution against mortgaged property.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.893/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 26.05.2022
DATE OF DECISION: 21.05.2026
Axis Bank Ltd. (earlier known as UTI Bank Ltd.), a banking company carrying on the banking business under the Banking Regulation Act, 1949, incorporated under The Companies Act, 1956 and having its Registered Office at "Trishul', 3rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad, Gujarat – 380006 and one of its branch offices amongst other places known as Axis Bank Ltd. situated in SCO No.367-368, 3rd Floor, Above Akash Education Institute, Sector 34-A, Chandigarh through its Deputy Manager, Sh. Rohit Varun Singh Thakur.
……..Applicant
Versus
…….. Defendants
Advocates:
Argued by, Sh. Rahul Garg, Advocate for Applicant
None for Defendants (Already ex-parte vide order dated 19.05.2026).
FINAL ORDER
2 OA/893/2022
AXIS BANK VS SH. JAGIR SINGH AND OTHERS
Sh. Rohit Varun Singh Thakur, Deputy Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 17.12.2021, which is Annexure A1 to this OA. 2. The brief facts of the OA are that defendant nos. 1 & 2 approached the applicant for grant of Cash Credit Facility of Rs.25,00,000.00 vide Application Form for Credit Facilities dated 07.06.2013, which is Annexure A2 to this OA.
Documents executed: Loan cum Hypothecation Agreement, Joint and Several Demand Promissory Note, D.P. Note Delivery cum Waiver Letter, Deed of Guarantee, all dated 13.08.2013, which are Annexures A4 to A7 to this OA; Legal Notice dated 16.04.2022, along with Postal Receipts, which is Annexure A9 to this OA; Statement of Account along with certificate, which is Annexure A10 to this OA.
3 OA/893/2022
AXIS BANK VS SH. JAGIR SINGH AND OTHERS
From the perusal of all the Annexures A1 to A10 to this OA, it is proved that the defendant nos. 1 & 2 approached applicant for availing of the loan facility, which was granted to them, defendant no.3 stood as guarantor and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.24,31,881.57 (Rupees Twenty Four Lacs Thirty One Thousand Eight Hundred Eighty One and Paise Fifty Seven Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @15.50%p.a. with half yearly rests from 03.11.2021 till the realization.
The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the hypothecated assets/mortgaged property, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill
4 OA/893/2022
AXIS BANK VS SH. JAGIR SINGH AND OTHERS
in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant simple interest @8.00% p.a. in the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.
12. Any other application pending stands disposed of.
Pronounced by me in the open Tribunal .
Dated: 21.05.2026
(MRIDULESH KUMAR SINGH)
Presiding Officer,
DRT-III, Chandigarh
1 issue framed by the court
Whether the applicant is entitled to recovery of the outstanding debt of Rs.24,31,881.57 from the respondents jointly and severally with adjusted interest.
2 provisions across 2 enactments
AXIS BANK LTD.
SH. JAGIR SINGH AND OTHERS
MRIDULESH KUMAR SINGH
As recorded by the court registry
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